Velvet Underground and the Warhol Foundation settle suit

A famous artist, one of the best rock bands of all time and a banana walk into a lawsuit.

What had the makings of a bad joke turned out to be a real copyright infringement suit between the Velvet Underground and the Andy Warhol Foundation for the Visual Arts.

In January 2012, the punk rockers filed suit against the Warhol Foundation, claiming trademark infringement. The groundbreaking band, founded by punk rock legends Lou Reed and John Cale, says the foundation’s agreement to license Warhol’s banana design, which is featured on the cover of the album “The Velvet Underground & Nico,” violates its intellectual property rights. The license would allow the design to be used on products such as covers for iPhones and iPads.

Trial in the suit was set to begin July 29, but according to court filings yesterday, the parties have reach an agreement. However, they did not disclose the details of the settlement.